The purpose of this study was to explore how overly positive self-estimations in peer relationships relate to subjective well-being and to the occurrence of interpersonal behaviors supporting basic psychological needs among elementary school students. This study tested the optimal margin hypothesis of positive illusion by examining the curvilinear relationship between these variables. The sample consisted of 346 fifth and sixth grade students. The self-criterion residual method was used to derive self-estimation bias scores by regressing the real peer relations index (i.e., In-degree) on their perceived peer relationship qualities. The results showed that girls more strongly overestimated the quality of their peer relationships than boys. Self-estimation biases had a positive curvilinear relationship with negative affects and a negative curvilinear relationship with relatedness needs supporting interpersonal behaviors. These results supported the existence of the optimal margin of positive illusion because overestimations of the quality of peer relationships were associated with lower levels of negative affects and relatedness needs-supporting interpersonal behaviors, though these benefits flattened out and no further benefit was observed after an optimal level of overestimation. However, self-estimation bias was linearly associated with positive affect, autonomy needs-supporting interpersonal behaviors, and competence needs-supporting interpersonal behaviors. These results indicated that optimal margin hypothesis was not supported for all outcome variables.

self-estimation biases, positive illusion, overestimation, interpersonal behaviors, subjective well-being